4. DISCONTINUED OPERATIONS

3 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

4.DISCONTINUED OPERATIONS

The Company determined to make available for sale the asset groups related to the energy segment due to its strategic shift to strictly focus on its bitcoin mining operations. As a result, the Energy segments' results of operations have been reclassified as discontinued operations on a retrospective basis for all periods presented. Accordingly, the assets and liabilities of this segment are separately reported as “assets and liabilities held for sale” as of June 30, 2022 in the consolidated balance sheets. The Company has since sold the majority of its software and intellectual property assets

related to the Energy segment, and is in the process of selling additional remaining inventory and assets. The results of operations of this segment, for all periods, are separately reported as “discontinued operations” in the consolidated statements of operations and comprehensive income (loss).

In November 2022, the Company sold certain software rights and assets that were classified as assets held for sale for a net sales price of $2,523 with a carrying amount of $813 resulting in a recognized gain on $1,710.

Provided below are the key areas of the financials that constitute the discontinued operations:

	December 31, 2022		September 30, 2022
ASSETS
Current assets
Accounts receivable, net	$	1,716	$	2,813
Inventory		4,400		4,400
Prepaid expense and other current assets		331		213
Total current assets held for sale	$	6,447	$	7,426
Property and equipment, net		11		11
Operating lease right of use asset		623		665
Intangible assets, net		—		869
Long-term assets held for sale	$	634	$	1,545
Total assets held for sale	$	7,081	$	8,971
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	601	$	919
Contract liabilities		63		117
Operating lease liability		166		163
Total current liabilities held for sale		830		1,199
Long-term liabilities
Operating lease liability, net of current portion		469		512
Total liabilities held for sale	$	1,299	$	1,711

	For the three months ended
	December 31, 2022			December 31, 2021
Revenues, net
Energy hardware, software and services revenue	$	101		$	4,118
Total revenues, net		101			4,118
Costs and expenses
Cost of revenues (exclusive of depreciation and amortization shown below)		48			3,074
Professional fees		—			73
Payroll expenses		274			1,556
General and administrative expenses		31			304
Depreciation and amortization		—			270
Total costs and expenses		353			5,277
Loss from operations	$	(252	)	$	(1,159	)
Other income (expense)
Gain on disposal of assets		1,710			—
Interest (expense) income		(1	)		1
Total other income (expense)		1,709			1
Income (loss) before income tax (expense) or benefit		1,457			(1,158	)
Income tax (expense) or benefit		—			—
Net income (loss) attributable to common shareholders	$	1,457		$	(1,158	)